Premium apartments: rating of cities with the highest price growth by 2024.

Rising inflation and rising interest rates were the main trends for the first half of 2023. The problems affected the premium real estate market the most, but the main winners were sales volumes, not prices. According to Knight Frank, the premium real estate market is more immune to the evolution of monetary policy thanks to the higher percentage of buyers using accounts, at 46%. However, they are also not immune. Price forecasts from December 2022 to the present vary according to the changing macroeconomic situation in different countries.

Inflation and premium real estate prices as forecasts change. Cities where premium housing prices will rise the most in 2023. Predictions for 2024 premium real estate prices. Overall, despite the end of the cheap credit era, the rising cost of living, and the International Monetary Fund's negative forecast that "advanced economies will struggle to overcome GDP growth above 1.4% by the end of 2024," the overall forecast for premium real estate price growth declines slightly, from 1.9% to 1.7% between December 2022 and July 2023.

Of the 26 cities tracked, six predict better growth than what was forecast six months ago, nine remain unchanged, and the rest predict slow growth. Forecasts for Geneva and Vancouver are more favorable in percentage terms, while Berlin, Edinburgh, Dublin, Los Angeles, Zurich and Lisbon showed the largest declines, although the pace remains relatively low, between 2% and 4%. Cities where premium real estate prices will rise the most in 2023. 20 of the 26 cities tracked predict sharp or positive growth in luxury home prices in 2023.

Dubai tops the luxury home price rankings for 2023, although annual growth is expected to drop to 14%, down from 44% last year. This is followed by Tokyo, Paris, Madrid and Miami, all expected to grow by 4% in 2023.

Gains of around 3% are forecast for Vancouver, Geneva, Mumbai and Singapore, while New York, Shanghai and Lisbon are at around 2.5%. A pleasant surprise after a long period of flat or even rising prices was Florence, which showed an increase of about 2%, on par with Zurich, Los Angeles and Dublin. Slightly less growth in Monaco. Premium house prices in Edinburgh, Berlin and London, which showed the most significant price increases, will continue to rise in 2023.

Predictions for 2024 premium real estate prices. Luxury real estate prices should improve in 2024 with an average growth of 2%, excluding Dubai. Ackland and Mumbai lead the way in forecasts for 2024, both expecting growth of 5% over a 12-month period. Ackland is entering a recovery phase after luxury real estate prices have fallen 17% since peaking in the third quarter of 2021. Meanwhile, in Mumbai, rising infrastructure investment and the relative value of the city are driving price growth, while in Singapore (4%) demand will continue to outstrip supply. Madrid (4%), Paris (3%) and Dublin (2.5%) are expected to perform best, with rising demand for luxury real estate and relative economic strength. Florence has also performed well, confirming price growth of 2% in 2024.